ContractsIntermediateAlaska Exam

In Alaska, a 'survival clause' in a purchase agreement typically provides that:

AThe contract terminates if either party dies before closing
BCertain representations and warranties survive the closing and remain enforceable after the deed is deliveredCorrect
CThe earnest money survives any dispute and is non-refundable
DThe broker's commission obligation survives cancellation of the contract, as is customary in this jurisdiction

Why Certain representations and warranties survive the closing and remain enforceable after the deed is delivered Is Correct

Answer B: Certain representations and warranties survive the closing and remain enforceable after the deed is delivered

A survival clause specifies that certain provisions — typically representations, warranties, and indemnification obligations — survive the closing and remain enforceable after the deed is delivered. Without a survival clause, the merger doctrine would extinguish these rights at closing.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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